On March 18, 1988, "Miao Li Bankruptcy Ke Wenzhe pointed out that he had made false accounts for more than ten years and named Changhua Kaohsiung next" to report on B. This is not true. The Ministry of Finance explained the following:
First, according to the local system law, municipalities and counties ( City) Financial revenues and expenditures and management, public debt is a matter of local government autonomy. The mayor of Taipei City pays attention to the financial and debt status of the government. The Ministry affirmed that the Mayor of Keke mentioned that the debt of Miaoli County was taken over by the Ministry. This is not true. As of the end of January, the long-term debt ratio of Changhua County and Kaohsiung City did not reach the upper limit of 90% of the debt ratio. Mayor Ke said that these two counties and cities were the next bankrupt local government.
2. According to the relevant provisions of the Public Debt Law, if the municipal or county (city) government violates the provisions of Article 5 of the Law, it shall report the debt repayment plan and correct or repay the debt within a certain period of time. The Miaoli County government's debt repayment plan was approved by the Executive Yuan on June 19, 2006. As of the end of January, the government's repayment of long-term and short-term debts was in line with the approved repayment of debts by the Executive Yuan; and because the government's finances are still severe, it should be Continue to actively implement the open source measures and implement the stipulations, and roll over the review year by year to achieve the debt reduction target set by the debt repayment plan.
3. In order to supervise the changes in the debts of municipalities and counties (cities), the Ministry of Finance adopts a hierarchical management mechanism for local debt situations, that is, according to the local government's long-term debt ratio, which accounts for the upper limit of its debt ratio, adopts different intensity management. For debt ratios exceeding the limit of super-strength management, up to 90% of the debt ratio, but not exceeding the limit, the intensity management, up to 60% of the debt ratio, but not 90% of the moderate management, the debt limit of 60% With light management, the Ministry of Finance currently adopts ultra-strength management for the debt situation of Miaoli County. As for the debt situation of Changhua County and Kaohsiung City, it adopts moderate management, and reviews the debt situation such as the control channel according to the public debt law to encourage local governments to implement discipline.
4. In the future, the headquarters will continue to strengthen local financial counseling and debt classification management mechanisms, and through supervision and guidance, and monthly review of local government debt, urge local governments to face fiscal soundness.
Source: Ministry of Finance